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Allocating profits and losses to the partners
Farrah and Davidson had beginning capital balances of $25,000 and $20,000, respectively. The two partners fail to agree on a profit-and-loss ratio. For the first month (June 2012), the partnership lost $6,000.
Requirements
1. How much of this loss goes to Farrah? How much goes to Davidson?
2. The partners withdrew no assets during June. What is each partner's capital balance at June 30? Prepare a T-account for each partner's capital.
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